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The price of (itc share price) trades exactly ahead of today’s Q3 results. Is it better to hold, sell, or buy?

Prior to today’s release of the Q3 results, itc share price were flat on Monday. The FMCG behemoth is anticipated to release respectable third-quarter financial results for FY24.

The opening price of an itc share price was ₹456.00, while its closing price on the BSE was ₹455.45.

Despite the fact that itc share price has gained more than 34% in a year, the stock has only increased by 5% in the last three months.

The analysts predict that the conglomerate that sells cigarettes to hotels will reap profits from steady volume growth in its FMCG business, which includes both cigarettes and non-cigarettes, as well as strong momentum in the hotels segment during the December quarter.

itc share price

As a result of the conglomerate’s increased product basket share of food and beverages, which will help offset the weak rural demand for FMCG due to unpredictable monsoons and high inflation, the cigarette manufacturer may report respectable results in Q3FY24, according to Parth Shah, Research Analyst at StoxBox.

Furthermore, itc share price hotel segment is anticipated to see strong growth in the third quarter because of the holiday season.

With the help of the generally stable tax structure, we anticipate that ITC’s cigarette segment will continue to see strong revenue growth of between 15% and 20% as well as stable margins. We think itc share price profitability will hold steady in Q3FY24 despite challenges from rising commodity costs,” Shah stated.

Several brokerage firms predict that itc share price will report a net profit of ₹5,183 crore for the quarter ending December 2023, representing a growth of 3% from the comparable quarter from the preceding financial year.

The stock of itc share price has increased by more than 34% in a year, but the share price has only increased by 5% in the last three months.

Prior to today’s release of the Q3 results, itc share price were flat on Monday. The FMCG behemoth is anticipated to release respectable third-quarter financial results for FY24.

From its previous close of ₹455.45 on the BSE, the opening price of itc share price was ₹456.00 each.

The analysts predict that the conglomerate that sells cigarettes to hotels will reap profits from steady volume growth in its FMCG business, which includes both cigarettes and non-cigarettes, as well as strong momentum in the hotels segment during the December quarter.

Click this link to read the ITC Q3 preview: Revenue up 5%, net profit expected to rise over 3%.

According to Parth Shah, Research Analyst at StoxBox, the cigarette manufacturer may report respectable results in Q3FY24 because of the larger proportion of food and beverages in its product line, which will aid the conglomerate in mitigating the weak rural demand for FMCG as a result of an unpredictable monsoon and high inflation.

Furthermore, ITC’s hotel segment is anticipated to see strong growth in the third quarter because of the holiday season.

With the help of the generally stable tax structure, we anticipate that ITC’s cigarette segment will continue to see strong revenue growth of between 15% and 20% as well as stable margins. We think ITC’s profitability will hold steady in Q3FY24 despite challenges from rising commodity costs,” Shah stated.

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According to projections from multiple brokerage firms, ITC is anticipated to report a net profit of ₹5,183 crore for the quarter ending December 2023, representing an increase of 3% from the corresponding quarter in the previous fiscal year.

It is projected that the company’s revenue in Q3FY24 will increase to ₹17,425 crore, a YoY growth of over 8%.

EBITDA is predicted to increase 4% YoY to ₹6,482 crore at the operational level, with the benefits of integrated manufacturing facilities and an improved sales mix driving an increase in EBITDA margin of 36 basis points (bps) to 39.1%.

Due to the strong base and the impact of the cyclone in key south Indian markets, cigarette volumes are expected to increase by 3%.

According to projections from multiple brokerage firms, itc share price is anticipated to report a net profit of ₹5,183 crore for the quarter ending December 2023, representing an increase of 3% from the equivalent quarter from the previous fiscal year. 

The analysts predict that the conglomerate that sells cigarettes to hotels will reap profits from steady volume growth in its FMCG business, which includes both cigarettes and non-cigarettes, as well as strong momentum in the hotels segment during the December quarter.

As a result of the conglomerate’s increased product basket share of food and beverages, which will help offset the weak rural demand for FMCG due to unpredictable monsoons and high inflation, the cigarette manufacturer may report respectable results in Q3FY24, according to Parth Shah, Research Analyst at StoxBox.

Furthermore, ITC’s hotel segment is anticipated to see strong growth in the third quarter because of the holiday season.

With the help of the generally stable tax structure, we anticipate that ITC’s cigarette segment will continue to see strong revenue growth of between 15% and 20% as well as stable margins. We think ITC’s profitability will hold steady in Q3FY24 despite challenges from rising commodity costs,” Shah stated.

According to estimates from multiple brokerage firms, itc share price is predicted to report a net profit of ₹5,183 crore for the quarter ending December 2023, representing a growth of 3% from the corresponding quarter in the previous fiscal year.

It is projected that the company’s revenue will increase by more than 8% YoY to ₹17,425 crore in Q3FY24.

At the operational level, EBITDA is anticipated to increase 4% YoY to ₹6,482 crore, with the benefits of integrated manufacturing facilities and an improved sales mix driving an expected 36 basis points (bps) expansion in EBITDA margin to 39.1%.

Because of the strong base and the impact of the cyclone in important south Indian markets, cigarette volumes are expected to increase by 3%.
ITC’s hotel division is anticipated to grow rapidly, while FMCG will continue to expand its margins despite challenging market conditions.

“We anticipate growth in single digit revenue. Axis Securities stated, “We anticipate that normalized cigarettes will grow 8% YoY (3% volume), FMCG will grow at 8% YoY, hotels will continue to have strong momentum, papers will decline due to a high base, and agriculture will grow on a lower base.

The demand outlook for rural versus urban areas, competitive intensity, trends in raw material prices, and the outlook for hotels and the agribusiness would be important future monitorables for itc share price.

itc share price: should you buy, sell, or hold them?
Prabhudas Lilladher, a brokerage firm, has recommended ITC stock with an Accumulate rating and a target price of ₹487 per share.

With a target price of ₹535 per share, Motilal Oswal Financial Services has issued a “Buy” call on itc share price. Its top choice is still ITC.

Despite the decline in illegal trade competition, the cigarette industry continues to grow in volume and market share. We also expect margins to expand as input prices decline. The FMCG – Others segment has also demonstrated strong growth across markets and product lines, according to Motilal Oswal.

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